Business Math Exam 3 Book Questions with 100% Correct Answers
5.1.7. Find the simple interest. $1974 at 6.3% for 25 weeks - ANSWER-$59.79 5.1.11. Find the maturity value and the amount of simple interest earned. $3125 at 2.85% for 7 months - ANSWER-$3176.95; $51.95 5.1.13. Find the maturity value and the amount of simple interest earned. If $1500 earned simple interest of $56.25 in 6 months, what was the simple interest rate? - ANSWER-7.5% 5.1.33. Find the present value (the amount that should be invested now to accumulate the following amount) if the money is compounded as indicated. $12,820.77 at 4.8% compounded annually for 6 years. - ANSWER-$9677.13 5.1.49. Celeste Nossiter borrowed $7200 from her father to buy a used car. She repaid him after 9 months, at an annual interest rate of 6.2%. Find the total amount she repaid. How much of this amount is interest? - ANSWER-$7534.80; $334.80 5.1.5. Find the simple interest. $25,000 at 3% for 9 months - ANSWER-$562.50 5.1.57. According to the Federal Reserve, from 1971 until 2014, the U.S. benchmark interest rate averaged 6.05%. (a) suppose $1000 is invested for 1 year in a CD earning 6.05% interest, compounded monthly. Find the future value of the account. (b) In March of 1980, the benchmark interest rate reached a high of 20%. Suppose the $1000 from part (a) was invested in a 1-year CD earning 20% interest, compounded monthly. Find the future value of the account. (c) In December of 2009, the benchmark interest rate reached a low of 20%. Suppose $1000 from part (a) was invested in a 1-year CD earning 0.25% interest, compounded monthly. Find the future value of the account.
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